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Acquisitions | 3 Months Ended
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Jun. 30, 2019
Business Combinations [Abstract] |
Acquisitions | Acquisition On December 7, 2018, the Company completed the acquisition of all of the issued and outstanding common stock of Alpha Technologies Services, Inc. (“ATS”) and Alpha Technologies Ltd. (“ATL”), resulting in ATS and ATL becoming wholly-owned subsidiaries of the Company (the “share purchase”). Additionally, the Company acquired substantially all of the assets of Alpha Technologies Inc. and certain assets of Altair Advanced Industries, Inc. and other affiliates of ATS and ATL (all such sellers, together with ATS and ATL, “Alpha”), in each case in accordance with the terms and conditions of certain restructuring agreements (collectively, the “asset acquisition” and together with the share purchase, the “acquisition”). Based in Bellingham, Washington, Alpha is a global industry leader in comprehensive commercial-grade energy solutions for broadband, telecom, renewable, industrial and traffic customers around the world. The initial purchase consideration for the acquisition was $750,000, of which $650,000 was paid in cash and the balance was settled by issuing 1,177,630 shares of EnerSys common stock. These shares were issued out of the Company's treasury stock and were valued at $84.92 per share, which was based on the thirty-day volume weighted average stock price of the Company’s common stock at closing, in accordance with the purchase agreement. The 1,177,630 shares had a closing date fair value of $93,268, based upon the December 7, 2018, closing date spot rate of $79.20. The total purchase consideration, consisting of cash paid of $650,000, shares valued at $93,268 and an adjustment for working capital (due from seller of $766) was $742,502. The Company funded the cash portion of the acquisition with borrowings from the Amended Credit Facility as defined in Note 12. See Note 12 for additional information. The acquisition expands the Company's footprint in broadband and telecom markets. The goodwill recognized in connection with this transaction reflects the benefits the Company expects to realize from being able to provide a one-stop, fully integrated power solutions offering to its customers, as well as the benefit of cost synergies from alignment of the Alpha group within its own organizational structure. The results of operations of Alpha have been included in the Company’s Americas segment. The following table represents the fair values assigned to the assets acquired and liabilities assumed and resulting goodwill. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year from the acquisition date (“the measurement period”). The acquired assets and assumed liabilities include the following:
Accounts receivable |  | $ | 115,467 |
Inventories |  | 84,297 |
Other current assets |  | 6,822 |
Other intangible assets |  | 332,000 |
Property, plant and equipment |  | 20,987 |
Other assets |  | 9,005 |
Total assets acquired |  | $ | 568,578 |
Accounts payable |  | 35,803 |
Accrued liabilities |  | 41,918 |
Deferred income taxes |  | 56,331 |
Other liabilities |  | 12,642 |
Total liabilities assumed |  | $ | 146,694 |
Net assets acquired |  | $ | 421,884 |
Purchase price: |  |
Cash paid for net assets acquired |  | $ | 650,000 |
Fair value of shares issued for net assets acquired |  | 93,268 |
Working capital adjustment |  | (766 | )
Total purchase consideration |  | 742,502 |
Less: Fair value of acquired identifiable assets and liabilities |  | 421,884 |
Goodwill |  | $ | 320,618 |
The following table summarizes the estimated fair value of Alpha's identifiable intangible assets and the initial assessment of their respective estimated lives:
|  | Type |  | Life in Years |  | Fair Value
Trademarks |  | Indefinite-lived |  | Indefinite |  | $ | 56,000 |
Customer relationships |  | Finite-lived |  | 14 |  | 221,000 |
Technology |  | Finite-lived |  | 10 |  | 55,000 |
Total identifiable intangible assets |  |  |  |  |  | $ | 332,000 |
The Company recorded the acquisition using the acquisition method of accounting and recognized the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The excess of the purchase price over the net tangible and intangible assets is recorded to goodwill. Estimated goodwill deductible for tax purposes is $42,262. The measurement of the fair value of assets acquired and liabilities assumed is substantially complete. The Company continues to gather necessary information to finalize the accounting for income taxes associated with the acquisition, and as such the Company could record additional adjustments to the provisional amount recognized as this additional information is obtained. The following unaudited summary information is presented on a consolidated pro forma basis as if the acquisition had occurred on April 1, 2017:
| Quarter ended
|  | July 1, 2018
Net sales |  | $ | 835,292 |
Net earnings attributable to EnerSys stockholders |  | 58,665 |
Net earnings per share attributable to EnerSys stockholders - basic |  | 1.36 |
Net earnings per share attributable to EnerSys stockholders - assuming dilution |  | 1.34 |
The pro forma amounts include additional interest expense on the debt issued to finance the purchases, amortization and depreciation expense based on the estimated fair value and useful lives of intangible assets and plant assets, and related tax effects. The pro forma results are not necessarily indicative of the combined results had the Alpha acquisition been completed on April 1, 2017, nor are they indicative of future combined results. The remeasurement of Alpha's deferred taxes due to the Tax Act are being excluded in arriving at these pro forma results. Other Intangible Assets Information regarding the Company’s other intangible assets are as follows:
|  | Balance as of
|  | June 30, 2019 |  | March 31, 2019
|  | Gross Amount |  | Accumulated Amortization |  | Net Amount |  | Gross Amount |  | Accumulated Amortization |  | Net Amount
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  | $ | 152,497 |  |  | $ | (953 | ) |  | $ | 151,544 |  |  | $ | 152,484 |  |  | $ | (953 | ) |  | $ | 151,531 |
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | 286,552 |  |  | (48,224 | ) |  | 238,328 |  |  | 286,664 |  |  | (42,704 | ) |  | 243,960 |
Non-compete |  | 3,015 |  |  | (2,768 | ) |  | 247 |  |  | 3,025 |  |  | (2,807 | ) |  | 218 |
Technology |  | 77,755 |  |  | (14,033 | ) |  | 63,722 |  |  | 77,779 |  |  | (12,229 | ) |  | 65,550 |
Trademarks |  | 2,003 |  |  | (1,257 | ) |  | 746 |  |  | 2,003 |  |  | (1,236 | ) |  | 767 |
Licenses |  | 1,484 |  |  | (1,196 | ) |  | 288 |  |  | 1,477 |  |  | (1,187 | ) |  | 290 |
Total |  | $ | 523,306 |  |  | $ | (68,431 | ) |  | $ | 454,875 |  |  | $ | 523,432 |  |  | $ | (61,116 | ) |  | $ | 462,316 |
The Company’s amortization expense related to finite-lived intangible assets was $7,316 and $2,069, for the first quarter of fiscal 2020 and fiscal 2019, respectively. The expected amortization expense based on the finite-lived intangible assets as of June 30, 2019, is $22,175 for the remainder of fiscal 2020, $29,237 in fiscal 2021, $28,993 in fiscal 2022, $27,694 in fiscal 2023 and $24,287 in fiscal 2024.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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